Communication

1
Chapter 3

• Communication
• and
• Internal Analysis

2
Communication Skills

• Be Respectful
• Communication Techniques
• Engagement Letter

3
Professional Liability

• Common Law Liability to Clients
• Common Law Liability to Third Parties
• Statutory Liability

4
Learning Styles

• Auditory
• Visual
• Tactical/Kinetic

5
Common Thinking Phases

• Linear
• Paradoxical
• Abstract
• High Cognitive

6
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7
Internal Analysis

• Life Cycle Positioning
• Attitudes and Beliefs
• Special Needs
• Financial Positioning
• Perception of Financial Situation

8
Life Cycle Phases Characteristics
9
Life Cycle Phases

• Asset Accumulation Phase
• Conservation/Protection Phase
• Distribution/Gifting Phase

10
Attitudes and Beliefs

• Risk Tolerance Levels
• Savings and Consumption Habits
• Views on Employment, Retirement, Leisure
• Attitude toward Government/Taxation

11
Special Needs

• Divorce
• Remarriage
• Aging Parents
• Disabled Dependents
• Terminal Illness
• Nontraditional Families
• Career Change Unemployment

12
Financial Position

• Analyzing the clients current financial position
  is time consuming because
• Client may need to access third parties for
  accurate information
• The planner will probably have to prepare the
  clients personal financial statements

13
Financial Position (contd)

• Financial statements needed include
• the balance sheet
• the income statement
• statement of change in net worth
• Information needed to create these statements
  include
• Assets
• Liabilities
• Income
• Expenses